Replies to post #6559 on A.I.M. Users Bulletin Board (AIMUSERS)

[Rien]

Hi All, my SW is ready to the point that I can start playing with it. And, ouch!, does that slow development down :-)

I was playing with RMBS to see "what would happen if", and got the following rather interesting result: If I use the 10/10/10 settings, I end up with slightly less performance (1 year, weekly update) than with the 10/10/5 setting. But what really got me was the drawdown on the available cash. The 10/10/5 setting went as low as 7% on the cash reserves, while the 10/10/10 settings never went below 45% cash reserve. (That is from the initial available $7500 the 10/10/5 went just below $500, while the 10/10/10 never went below $3400)

Is this just typical for RMBS, or is there a general principle at work? Anybody else noticed something like this?


Best,
Rien.